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As China attempted to revive the ancient Silk Road through its widely publicized ‘Belt and Road Initiative’, there is growing interest in the modern implications of the ancient trade routes. Did China dominate the Silk Road in the ancient times? What was the impact of trans-continental trade on the countries along the Silk Road? How did wealth and power generated by the commercial links reshape international relations across the Eurasian Continent? This paper attempts to address these important questions by focusing on two of the historical periods when China controlled the eastern route of the Silk Road: the Han Dynasty (206BCE-220CE) and the Tang Dynasty (618-907CE). The attention is paid to the rise and fall of small trading states along the western periphery of the Chinese influences, particularly the Loulan Kingdom and the Kucha Kingdom. The analysis shows that international relations of the ancient Silk Road was heavily influenced by the pursuit of wealth, the hierarchy of regional states, and the conflict among great powers. Despite their substantial influences, the two Chinese dynasties did not fully dominate the ancient Silk Road.